On the weekly timeframe, we can spot that the prices have taken support from the 50 percent Fibonacci retracement level of the prior advance from 16,747 (September 2022) till 18,887 (November 2022), which is again in sync with the bearish trend line which shows change in the polarity.
Nifty on daily charts, we can spot that the prices are trading below the 20-day SMA (simple moving average) which is acting as a variable resistance for the prices.
The momentum indicator RSI (relative strength index), plotted on the weekly timeframe is moving with the trend confirming the current downtrend.
The Nifty has immediate resistance placed at 18,000 (psychological support) followed by 18,265 (key resistance) levels. The downside support for the index is placed at 17,775 (swing low) followed by 17,600 (key support).
Based on the overall trend and indications from indicators, it is expected that the Nifty will stay in rangebound territory of 17,775 – 18,000 level. While a breach below the level of 17,775 can drag the prices lower till 17,600.
Here are three buy calls for next 2-3 weeks:
PNC Infratech: Buy | LTP: Rs 326.80 | Stop-Loss: Rs 285 | Target: Rs 390 | Return: 19 percent
PNC Infratech's stock price has broken through its previous high of Rs 305 (September 12, 2022), indicating a potential change in trend towards positive side. This move also invalidates the previous pattern of lower highs and lower lows that was present before this event.
The stock in the previous week broke out of an inverse head and shoulder pattern, which is a bullish technical sign and suggests that the stock may be starting a trend to the upside.
The stock price has recovered after reaching the 18-week exponential moving average (EMA), which has previously provided support for the price on previous occasions.
The performance of the stock, as measured by its ratio chart against the Nifty Infra index, has exceeded previous levels, illustrating that the stock is outperforming the index.
The weekly relative strength index (RSI) has failed to reach lower levels (Swing Failure), indicating that the upward momentum of the stock is increasing.
Going ahead we expect the prices to go higher till Rs 390 level where stop-loss must be Rs 285 on the closing basis.
Hindware Home Innovation: Buy | LTP: Rs 472.25 | Stop-Loss: Rs 430 | Target: Rs 570 | Return: 21 percent
Hindware is currently trading at its all-time high level which tells that the stock already is in strong momentum.
The stock post the breakout from the Cup & Handle pattern now has started to rise which indicates beginning of the trend to the upside. The breakout occurred on December 26, 2022.
The stock on the daily timeframe is consistently trading near upper Bollinger Band which points towards the rising volatility for an up move.
The momentum indicator RSI on the weekly timeframe has shown range shift pointing towards rising momentum of the prices.
Going ahead we expect the prices to move Higher till the level of Rs 570 where the stop-loss must be Rs 430 on the closing basis.
Rico Auto: Buy | LTP: Rs 92.10 | Stop-Loss: Rs 78 | Target: Rs 115 | Return: 25 percent
Rico Auto is currently trading above its multi-year level of Rs 86 which prices have surpassed for the first-time post August 2018. This shows overall Bullish undertone of the prices.
The stock has retested the neckline of rounding bottom pattern before showing a bounce to the upside. This Points towards the continuation of trend in the direction of breakout.
The stock has sustained above key moving averages of 50 and 200-day EMA (exponential moving average) which confirms the intact uptrend.
The uptrend is accompanied by higher volumes showing long built up in the stock.
The momentum indicator RSI has sustained well above 60 mark on the daily as well as on the weekly timeframe reflecting strong momentum.
Going ahead we expect the prices to move higher till Rs 115 where the stop-loss must be Rs 78 on the closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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